The next next few weeks will be telling- Comment on the financial stability report from Richard Pike at Phoebus Software

11 December 2020

Richard Pike, Phoebus Software sales and marketing director, says “For many, the financial fears following this year’s pandemic are overriding, but the potential threat posed by a mismanaged Brexit has similar magnitude to the UK's long term financial wellbeing. Nonetheless, the Bank of England says it has mitigation plans in place to help the country weather any instability that comes at the end of the transition period, which offers some level of comfort."

“However, for the general public, fiscal thoughts are more likely to be related to job security, credit availability and disposable income. It is evident that lenders’ appetite for high LTV lending has diminished as income levels have been hit hard by the pandemic and credit risk increases. So it is good to see that the FPC is reviewing its mortgage market recommendations in 2021 to reflect the changes the market will face post-pandemic.

“There is no doubt that we are in for a turbulent start to 2021 but, with the vaccine rolling out, there is light at the end of the tunnel, to get us through the pandemic. However, it remains to be seen how the economy reacts to the outcome of the Brexit negotiations, and the next few weeks will be telling in this area.”